St. Paul business owners, community members speak in support of proposed sales tax increase

Group of St. Paul business owners to speak on proposed sales tax increase Friday

A group of St. Paul business owners is set to speak out Friday in favor of a 1% sales tax increase in the city – a measure that’s on the ballot ahead of Tuesday’s election.

A group of St. Paul business owners spoke out Friday in favor of a proposed 1% municipal sales tax increase — a measure that’s on the ballot ahead of Tuesday’s election.

If voters pass the measure next week, the 1% tax increase would take effect April 1 and would last for a period of 20 years. Officials say the city stands to collect nearly $1 billion in revenue over that time.

“Our roads — like our schools, parks and libraries — are a product of the collective effort we make to care for our neighbors,” said Vivian Ihekoronye with Faith in Minnesota. “We have another chance this election to work together to create a healthier and more connected St. Paul.”

Some of the money would be used for improving parks, trails and community centers that are considered to be in poor condition, and also build a new community center on the city’s Eastside.

However, a majority of that money would be spent on fixing several roads in the city, as officials say the streets in St. Paul are on a 124-year reconstruction cycle when they’re supposed to be worked on every 60 years.

“Summit Avenue, for example, which is one of the streets that we’re proposing to reconstruct. The last time Summit Avenue was fully reconstructed, William Taft was the president, so that was just over 100 years ago,” said St. Paul Mayor Melvin Carter.

However, not everyone is on board with the idea.

Critics of the proposed tax say they worry it will negatively affect local businesses, saying it could push shoppers to take their money to other, lower-taxed parts of the metro.

In a statement, B Kyle, president and CEO of the St. Paul Chamber, pointed to numerous other new taxes that were just passed this year, such as a metro-wide 1% sales tax, a $0.50 on retail orders of $100 or more, increased tab fees and a 0.7% payroll tax to support paid family and medical leave. Plus, if the sales tax ballot measure passes, St. Paul will have the highest sales tax of any city in the state.

“Instead of imposing the highest sales tax rate in the state, we must consider the potential negative impacts on businesses, consumers, and the local economy, not to mention the limited scope of its impact to repair our street infrastructure,” Kyle wrote. “We need to explore alternative solutions, such as supporting new development, leveraging the new revenue headed St. Paul’s way and focusing on core city services in the budget process to address our city’s needs without overburdening our residents.”